Keysight Technologies Inc. · NYSE:KEYS
Keysight Technologies — Q4 2021 Earnings Presentation
21 slides from Keysight Technologies's earnings presentation, Nov 22, 2021
Slide 1: Q4 Fiscal Year 2021 Results
Keysight Technologies Q4 Fiscal Year 2021 Results
Slide 2: Forward-looking statements safe harbor
This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that otherwise i
Slide 3: Record quarterly and full-year orders, revenue and profitability
Record quarterly and full-year orders – double-digit order growth across all end markets and regions • Q4 orders of $1.5B grew 21% on a reported and core basis • FY21 orders of $5.4B grew 18% or 16% on a core basis Record quarterly and full-year revenue • Q4 revenue of $1.3B grew 6% y/y, or 5% on a
Slide 4: Q4 Orders, Revenue, Operating Margin, EPS
Orders Revenue Operating Margin EPS $1.491B $1.294B 30.7% $1.82 +21%y/y (+21% core*) +6%y/y (+5% core*) +140 basis points y/y +12%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months.. 4 ** Reconciliations to closest GAAP equivalent provided fo
Slide 5: Q4'21 Revenue: $1,294M by Segment and Region
nevenue MY VCYCIIt & VY INGUYIVII iid By Segment By Region Asia Pacific 43% KEYSIGHT 5 TECHNOLOGIES
Slide 6: Regional Highlights (Y/Y Revenue Growth)
+9% (+8% core*): Strength in CC and EI; +4% (+3% core*): Strength in EI and CC; +4% (+4% core*): Strength in EI and ADG; softness in ADG softness in ADG softness in CC Regional Highlights (Y/Y Revenue Growth*) Key: * Core revenue growth excludes the impact of currency, acquisitions or divestitures c
Slide 7: Communications Solutions Group results
Revenue • Record CSG orders and revenue $919M • Commercial Communications: Record orders and revenue driven by 5G platform +2% y/y (+1% core*) strength, continued O-RAN adoption, and investment in 400G and 800G R&D • Aerospace, Defense & Government: Record orders and revenue driven by space, Operati
Slide 8: Electronic Industrial Solutions Group results
Revenue • Record EISG revenue and operating margin $375M • Continued investment in advanced technology nodes and capacity expansion drove +18% y/y (+18% core*) record semiconductor solutions revenue • Record automotive orders and fourth quarter revenue driven by strong investments in Operating Margi
Slide 9: End Market Revenue YoY %
End Market Revenue YoY % Commercial $622M +3% Communications Aerospace, Defense & $297M - Government Electronic Industrial $375M +18% Solutions Total $1,294M +6% 9
Slide 10: Q1'22 Guidance and FY22 Financial Considerations
Q1'22 Guidance Revenue $1.225B - $1.245B Revenue Growth +4% to +6% Non-GAAP Earnings per share $1.50 - $1.56 FY22 Financial Considerations • Net Interest and Other Income/Expense: $4M - $6M net expense / quarter • Non-GAAP tax rate of 12% • Guidance assumes Q1 weighted average diluted share count of
Slide 11: Fiscal Year Orders, Revenue, Operating Margin, EPS
Orders Revenue Operating Margin EPS $5.356B $4.941B 27.9% $6.23 12% CAGR 11% CAGR +950 basis points 25% CAGR * Reconciliations to closest GAAP equivalent provided. Non-GAAP revenue excludes the impact of fair-value adjustments to acquisition-related deferred revenue balances; for FY20 and FY21, the
Slide 12: Investor Day March 2020 Videos
Investor Day March 2020 Videos (single-click access to each executive’s presentation) Company Overview and Strategic Direction Ron Nersesian Chairman, President and CEO (36 minutes) Culture and Talent Transformation Ingrid Estrada SVP, CAO (13 minutes) Technology Leadership and Software Differentiat
Slide 13: Reconciliations
ao &, oe Reconciliations AW KEYSIGHT TeCANCL GES
Slide 14: Non-GAAP Gross Profit Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP GROSS PROFIT RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2021 2020 2021 2020 Gross Profit, as reported $ 837 $ 756 $ 3,069 $ 2,533 Amortization of acquisition-related balances 13 4
Slide 15: Non-GAAP Operating Margin Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2021 2020 2021 2020 Income from operations, as reported $ 349 $ 278 $ 1,080 $ 765 Amortization of acquisition-related b
Slide 16: Non-GAAP Net Income and Diluted EPS Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2021 2020 2021 2020 Diluted Diluted Diluted Diluted Net Income EPS Net Income EPS Net Income EPS Net Incom
Slide 17: Reconciliation of Core Revenue
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Year-over-year compare Year-over-year compare Percent Percent Q4'21 Q4'20 Inc/(Dec) FY21 FY20 Inc/(Dec) Revenue $ 1,294 $ 1,220 6% $ 4,941 $ 4,221 17 % Adjustments: Revenue from acquisitions or divestitu
Slide 18: Reconciliations of Core Revenue by Segment and Region
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATIONS OF CORE REVENUE BY SEGMENT AND REGION (In millions) (Unaudited) PRELIMINARY Year-over-Year Revenue from acquisitions or Currency Revenue divestitures Adjustments Core Revenue Revenue by Segment Q4'21 Q4'20 YoY % Chg. Q4'21 Q4'20 Q4'21 Q4'21 Q4'20 YoY % Chg
Slide 19: Revenue by End Markets
KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q4'21 Q4'20 Inc/(Dec) Aerospace, Defense and Government $ 297 $ 296 - Commercial Communications 622 605 3% Electronic Industrial 375 319 18% Total Revenue $ 1,294 $ 1,220 6% Refer to non-GAAP financial m
Slide 20: Free Cash Flow
KEYSIGHT TECHNOLOGIES, INC. FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Year ended October 31, 2021 2020 Net cash provided by operating activities $ 1,322 $ 1,016 Less: Investments in property, plant and equipment (174) (117) Free cash flow $ 1,148 $ 899 Refer to non-GAAP financial measures
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results “through the eye
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